US Savings Bonds

Archive for April, 2010

Question: which one of these has the lowest risk & rate of return? a.Savings Bonds b.stocks c.collectibles d.real estate?

Answer: a.Savings Bonds

Theoretically Savings Bonds have the lowest expected eturn because they are the safest, backed by the government.

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Question: Can I use a Tax Free Savings Account (TFSA) to trade stocks through a Canadian Bank?

I haven’t bought or sold stocks before, so my question is two-fold.
I heard of the TFSA, and that you can use it to make tax free income, and you’re allowed up to 5 k per year in new principal capital, or 10 k if it’s your first time.
My question, can I use this money to buy stocks on the US or Canadian Stock Markets?
If so, how do I set this up? Can I buy stocks online via Scotia Bank or do I have to use some other website to buy and sell stocks?
I don’t have a TFSA yet, but what I’ve found from the Scotia website is that they mostly offer bonds or scotia Mutual Funds, which I’m not too interested in getting in to at the moment…..
I would hope there is a way to set it all up with Scotia and buy from there, but if not I’d like to know how to trade in stocks while taking advantage of this TFSA.

Answer: TFSA is definitely something every Canadian should take advantage of. You get to keep up to 5 grand per year on any capital gains made. Ie money made from the stock market, dividends, even interest. If your not interested in buying bonds or investing in Mutual Funds don’t. You have to ask yourself why Scotia bank pushing there Mutual Funds anyways…

All canadian banks offer this, you should be able to walk into any bank and set one in a couple of minutes. You can probably even do it online. If your interested in investing in the stock market go to your bank, open up a brokerage account and a TFSA. Ask them how the TFSA works.

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Question: Savings Bonds, how can You tell if they have been cashed?

Ok so my grandmother sends Savings Bonds every birthday and Christmas. Right now I have a couple thousand dollars in Savings Bonds. I was looking through them and noticed I’m missing four years worth of Savings Bonds. I called her and she says she sent them to my fathers house. Well my father is not what you would call a straight shooter he is not what you would call trust worthy with money. So my question is is there any way to know if the Savings Bonds were cashed? Is there somewhere I can call or a website? Anything at all? I am in desperate need of that money which is just about 1200$ and without I cant buy my car and without a car I’m going to have hug problems.

Please and thank you

Answer: Psycho, In order to cash a savings bond you surrender them. I won’t speculate on what may have happened to them, but the only way to find out would be to get the receipt of sale from G’ma and find the serial #s. Then you can go just about anywhere,(gov site or a local bank can help you), to see if & when they were cashed in.

Garden Party 2010